All Forum Posts by: Isadore Nelson

Hey everyone,
A friend recently made a comment that really stuck with me — they said tent camps in California might become the norm in the future because of how unaffordable housing is getting.

With AI advancing so fast, I'm starting to seriously wonder:

• Will large portions of the workforce be pushed out of stable jobs?

• If people can’t keep up economically, what happens to housing demand, affordability, and the rental market?

• Could we realistically be heading toward a future where tent cities or informal housing become more common, especially in high-cost states?

As investors and folks in real estate, how do you see this playing out?
Are you preparing for major shifts in tenant profiles, housing types, or market dynamics?

Appreciate any insights!

Quote from @Jordan Flescher:

Pay everyone to leave... 🤷

Next step? How does that help?

I’m looking at purchasing a quadplex in New York City, where all four units are rent-controlled, with two units vacant and two still occupied by rent-controlled tenants. Is there a way to remove rent control from these units, especially the vacant ones?

I’d appreciate hearing from anyone with experience in this area, particularly if you know of any process to decontrol rent-controlled units when they become vacant.

Also, I’m seeking recommendations for an attorney with expertise in rent control, tenant law, or real estate in NYC. Any leads or advice would be greatly appreciated!

Quote from @Joe Hershkowitz:

Quote from @Brandon Morgan:

@Joe Hershkowitz yeah I think it depends on the condition of the home and the location. I will go over with my realtor for the exact comps to see if it's worth it. But overall I am willing to try because the prices of homes in that area are extremely cheap compared to what I'm used to in Jersey where I live. 

Got you.

I don't own in Scranton a lot of properties, But I still think 2K is a bit overpriced Especially if you make your tenants pay utilities, But I might be wrong, just wanna make you aware so you make sure before you go into any deal.

Joe, Lomir Efsher Reden?

Good question.

Hey Mordecai,

Sounds like you’re in a great spot with your real estate portfolio already! In terms of the Roth 401(k) withdrawal, here’s my take:

First off, that $60K withdrawal might sting a bit with the tax hit, but if you’re using it to buy a property that gives you solid cash flow ($1,300/month), it might make sense in the long run. That $15.6K/year in profit from the new property adds up, especially when you factor in potential appreciation over time.

As far as the Roth 401(k) goes, the growth potential is nice, but it’s not going to generate the same kind of passive income you’re going to see with real estate. You already have a pretty solid portfolio, so adding another property and generating more cash flow might accelerate your wealth in a way that the Roth can’t match, especially if you’re planning to transition to real estate full-time soon.

The long-term game for you seems to be building that cash flow and equity in real estate, and it sounds like taking the hit on the Roth 401(k) could be worth it for the immediate returns. Plus, as you mentioned, you could always tap into the equity later on to continue expanding.

At the end of the day, it’s about what fits best with your goals. If you’re focused on cash flow now and building real estate wealth, it seems like pulling from the Roth could make sense. But definitely consider chatting with a financial advisor who knows real estate—they can help run the numbers for you.

Hope that helps, and good luck!

Hi all,

I’m an investor looking to understand how to legally remove a property or unit from rent stabilization in New York City. If I purchase a building with rent-stabilized tenants, are there any legal ways to de-stabilize the units, especially after doing significant renovations or rehabbing the property? What criteria or requirements must be met for this to happen, and what’s the process I need to follow to ensure compliance with the law?

Thanks in advance for any insights or experiences!

Hello everyone,

I'm interested in learning more about NYC foreclosure auctions, and I was hoping to tap into the collective knowledge here. If anyone has experience or tips to share, I’d really appreciate it!

Here are a few things I'm curious about:

1. How do foreclosure auctions work in NYC? - I understand that properties go to auction, but what’s the process like from start to finish? 

2. What’s the redemption period like? - I’ve heard that in some cases, the homeowner can still redeem the property after the auction. How long does this period last in New York, and how does it impact the auction?

3. What are the risks? - What should I be aware of when bidding at these auctions? Are there any hidden costs or legal issues I need to consider?

4. Any general tips or advice? - Whether it’s about funding, research, or things I should look for in the auction listing, any insights are appreciated!

Thanks in advance for your help!

Quote from @James Hamling:

@Jonathan Greene to piggy-back on what your laying down here: 

I believe a core component of the "problem" is a gross over & mis use of "Cash-flow". 

If everyone would simply eradicate that from there vocabulary and replace it with "Realized PERFORMANCE". Than maybe with adjusting the vocabulary to REALIZED performance and UNREALIZED performance, we can start correcting understandings. 

There is realized gains & profits, and UN-realized gains and profits. As well as UN-realized expenses. And YES, far FAR too often I am seeing people stack up UN-realized expenses at a compounding rate, to give selves a false sense of "profit" on whatever monthly/quarterly capital there moving around. 

Remove "Cash-flow" from the vocabulary. 

Use Realized and Unrealized PERFORMANCE in place of such. 

Does size of mortgage paydown become a factor here? Like I can do a BRRR on 600k property with no cash-flow or a 150k property with $300 monthly cash-flow, but do not have the same investment vehicle, and it is the same cash that is doing both, as for the 600k purchase I'd be using the same 100k towards hard money loan.

Quote from @Nathan Gesner:

Quote from @Isadore Nelson:

Give the expectation, a deadline, and a penalty. If she accepts the offer, make her sign and you both get a copy.

"You are required to vacate the home before 5:00 PM on December 31, 2024. The Landlord will verify that the rental is empty of all personal belongings and trash and that there is no damage beyond ordinary wear and tear. Upon verification, the Landlord will pay you $2,000 cash, and both parties will sign a receipt acknowledging that your account has been settled. If you are not out by the deadline or the property is damaged, this agreement will be void, and the Landlord will pursue legal means to evict and collect all unpaid rents, plus any other charges owed."

You should consider consulting an attorney.

I've consulted an attorney, they usually like to handle the case in court and not advise on intricacies of how to negotiate a cash for keys arrangement.